Acme Materials Company manufactures and sells synthetic coatings that can withstand high temperatures. Its primary customers are aviation manufacturers and maintenance companies. The following table contains financial information pertaining to cost of quality (COQ) in 2019 and 2020 (in thousands of dollars):

Required:

1. Classify the cost items in the table into cost-of-quality (COQ) categories.

2. Calculate the ratio of each COQ category to revenues in each of the 2 years.

Classify the cost items in the table into cost-of-quality (COQ) categories. Calculate the ratio of each COQ category to revenues in each of the 2 years. (Enter amounts in thousands, not in whole dollar. Round your "Percentage" answers to 2 decimal places.)

6.

Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31):

On July 1, 2021, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by GAAP. The assets of the component were sold on September 30, 2021, for $120,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows:

In addition to the account balances above, several events occurred during 2021 that have not yet been reflected in the above accounts:

1. A fire caused $68,000 in uninsured damages to the main office building. The fire was considered to be an unusual event.
2. Inventory that had cost $58,000 had become obsolete because a competitor introduced a better product. The inventory was written down to its scrap value of $5,000.
3. Income taxes have not yet been recorded.

Required:
Prepare a multiple-step income statement for the Reed Company for 2021, showing 2020 information in comparative format, including income taxes computed at 25% and EPS disclosures assuming 600,000 shares of outstanding common stock. (Amounts to be deducted should be indicated with a minus sign. Round EPS answers to 2 decimal places.)

Compute the following ratios for 2022 and 2021. (Round current ratio and inventory turnover to 2 decimal places, e.g 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 12.6%.)

Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31):

On July 1, 2021, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by GAAP. The assets of the component were sold on September 30, 2021, for $116,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows:

In addition to the account balances above, several events occurred during 2021 that have not yet been reflected in the above accounts:

1. A fire caused $67,000 in uninsured damages to the main office building. The fire was considered to be an unusual event.
2. Inventory that had cost $57,000 had become obsolete because a competitor introduced a better product. The inventory was written down to its scrap value of $8,000.
3. Income taxes have not yet been recorded.

Required:
Prepare a multiple-step income statement for the Reed Company for 2021, showing 2020 information in comparative format, including income taxes computed at 25% and EPS disclosures assuming 800,000 shares of outstanding common stock. (Amounts to be deducted should be indicated with a minus sign. Round EPS answers to 2 decimal places.)

Problem 3-02A a-c, d1-d3 (Video) (Part Level Submission)

The Tamarisk, Inc. opened for business on May 1, 2020. Its trial balance before adjustment on May 31 is as follows.

In addition to those accounts listed on the trial balance, the chart of accounts for Tamarisk, Inc. also contains the following accounts and account numbers: No. 142 Accumulated Depreciation—Buildings, No. 150 Accumulated Depreciation—Equipment, No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No. 619 Depreciation Expense, No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense.

Other data:

Journalize the adjusting entries on May 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.)

1. Explain why drugs are covered and protected by copyright law but recipes are not.

2. What are the arguments for extending copyright protection to the fashion industry? How might it change the way clothes are produced and sold? Would it affect us, the final consumers?  

3. What do you think? Should the law extending copyright protection to the fashion industry be passed?

Copycats vs. Copyrights

Does it make sense to legally protect the fashion industry from knockoffs?

Fashion designer Zac Posen helps country singer Martina McBride choose a dress. Posen is one of those who want a law to protect designs from knockoffs.

I pride myself on being a man of substance. A wonk. A nerd, even. And like most nerds, I don’t have a great eye for fashion. So I ask this question seriously: what did you think of Chelsea Clinton’s Vera Wang wedding dress? Want to buy it? What if I can sell it to you really, really cheap?

On Aug. 5, Sen. Chuck Schumer (D-N.Y.) introduced S.3728: the Innovative Design Protection and Piracy Prevention Act. He’s got 10 cosponsors—including three Republicans—and a big idea: to extend copyright protections to the fashion industry, where none currently exist. That’s right: none. I—well, not I, but someone who can sew—can copy Vera Wang’s (extremely expensive) dress and sell it to you right now (for much less), and Wang can’t do a thing about it.

Allen Schwartz, founder and lead designer of the label ABS, has already promised to do exactly that. He’ll take the dress, remake it, and sell it to the masses for much cheaper. Is he stealing? Or is he popularizing? Schumer’s legislation suggests his answer: he wants to make Schwartz’s imitation illegal. Only Vera Wang should be able to profit from her designs, at least for the first three years (the length of Schumer’s proposed copyright). But what if he’s wrong? What if copying, despite what your teacher always told you, is ... good?

We’re used to the logic of copyright. Movies, music, and pharmaceuticals all use some form of patent or copyright protection. The idea is simple: if people can’t profit from innovation, they won’t innovate. So to encourage the development of stuff we want, we give the innovators something very valuable—exclusive access to the profit from their innovations. We’ve so bought into the logic that we allow companies to patent human genes.

And companies love copyright. They love it so much they persuaded Congress to pass the Sonny Bono Act, which extended individual copyright protections to the life of the author, plus another 70 years; and corporate copyrights to 120 years from creation, or 95 years from publication, whichever is earlier. That’s an absurdly long time, and it belies the original point of patents: does anyone seriously believe that a 40-year-old with a money-making idea is going to hold back because someone can mimic it 20 years after he dies?

At a certain point, copyrights stop protecting innovation and begin protecting profits. They scare off future inventors who want to take a 60-year-old idea and use it as the foundation to build something new and interesting. That’s the difficulty of copyrights, patents, and other forms of intellectual protection. Too little, and the first innovation won’t happen. Too much, and the second innovation—the one relying on the first—will be stanched.

Which is why we have to be careful when one industry or another demands more copyright protection for itself. “Intellectual property is legalized monopoly,” says James Boyle, a professor at Duke Law School. “And like any monopoly, its tendency is to raise prices and diminish availability. We should have a high burden of proof for whether it’s necessary."

Drug development probably meets the burden of proof. It costs hundreds of millions of dollars to bring a drug to market. If Pfizer could just copy the drugs Novartis develops, Novartis wouldn’t have much reason to develop drugs.

Recipes don’t. You can’t patent dessert. Just ask Jean-Georges Vongerichten. Years ago, he created a chocolate cake with a molten core of liquid chocolate. The recipe became a sensation. Which meant it appeared on menus all across the country, with no credit to JGV. That’s a bummer for its creator, but a boon to all of us who don’t live in New York. We get to eat it anyway. And yet innovation continues apace in the food world. JGV is still a rich man. We can have our cake and eat it, too. (Sorry, sorry.)

So which one is fashion? Well, look around. Sure seems as if there are a lot of clothing options, and at all manner of price points. The big fashion houses are raking in billions of dollars in profits. What’s the problem we’re trying to solve?

Well, there’s the principle of the thing. Designers don’t like being copied. It doesn’t seem fair. But there’s nothing fair about legal monopolies, either. The question is, which benefits consumers more?

Then there’s the matter of profit: Schwartz is threatening to take Wang’s profits. In theory, that might dissuade Wang from making new dresses. But America has never had copyright protection for dresses, and Wang keeps making—and profiting from—them. Meanwhile, Schwartz’s copies make versions of Wang’s designs available to consumers who would never be able to afford them otherwise. That has value, too. Copyright law is supposed to help consumers by protecting innovation, not producers by protecting profits. If we’re not having an innovation problem, we’re not having a problem that needs to be fixed through copyright.

Fordham University’s Susan Scafidi, who helped craft the legislation, says that it’s actually small designers that we need to worry about. They get ripped off, and because they don’t have the name recognition of a Vera Wang, there’s nothing they can do about it, and so they have to close up shop. But how many of them? There’s anecdotal evidence of this, but we’ve got record numbers of students signing up for fashion-design school, and the entire American fashion industry has emerged and thrived in the absence of copyright.

And what about the dangers of the new law? Schumer’s office has worked to protect against frivolous lawsuits. The language is very narrow, and cynical plaintiffs would have a tough road ahead of them. But the letter of the law does not always govern the effect of the law: small designers and retailers don’t have attorneys on retainer, and if bigger firms take the opportunity to start sending out a lot of intimidating cease-and-desist letters, or opportunists try to patent everything in sight and sue their way to prosperity, we could, at the least, see the legal fees and threats pile up—and ultimately consumers will pay for that.

And then there’s the question of creep: a judge could interpret the law as bigger than Congress intends, or a future Congress could expand the law beyond what Schumer intends—as has happened in other areas of copyright.

If we’re going to risk all that, the law needs to carry some serious benefits. And it might have one: innovation. “We have Allen Schwartz and six other companies making slavish copies of Vera Wang,” Scafidi says. “But suppose we have this law in place. The other companies can’t copy it exactly, so they go to their designers and create six or seven versions at the affordable price point.” In other words, the ability to copy might reduce the need to innovate.

Jennifer Jenkins, an intellectual-property expert at Duke, disagrees. “In fashion, copying has benefits,” she argues. First, knockoffs make designs trendy, and that increases the value of the original, and thus the incentives for designers to innovate. Second, it makes them affordable, so more people can wear them. Vera Wang and Allen Schwartz aren’t selling to the same crowds, and there are a lot more people shopping at discount stores than at designer boutiques (which is why many designers are now licensing their names to retail outlets like Target). And third, it speeds up innovation, as fashion designers have to keep churning out new products to stay ahead of the copycats.

But perhaps the strongest argument is that America’s apparel industry doesn’t seem broken—so why try and fix it? “America is the world fashion leader,” said Steven Kolb, director of the Council of Fashion Designers of America, the lead trade group in support of the Schumer bill, “and yet it is basically the only industrialized country that does not provide protection for fashion design.”

Run that by me one more time? We’re the world leader in fashion, so we should change our policy to mimic our lagging competitors?

Too often, copyrights are used not to protect consumers by making sure they have access to new products, but to protect the profits of producers. It’s no coincidence that the rise of the Internet—which led to an explosion of low-cost distribution networks, new forms of competition, and unexpected types of innovation—has also led to calls for new and stronger forms of intellectual protection.

Consumers assume this is all for them, as that’s what they’ve been told. But it isn’t. There’s a reason we’re skeptical of monopolies, and we shouldn’t forget that even when they’re dressed up as “copyrights.”

Create a class called MovieReducerExtremes that implements MediaReducer. Implement a reducer that takes a movie list and an option ("newest" or "oldest"), then return the newest or oldest movie as appropriate.Submit both the MovieReducerExtremes and the Movie class from the first question.

/////Required Output:///////

Newest\n
 2014 AKA Jessica Jones                                       Action         \n
Oldest\n
 1936 Cabaret                                                 Music          \n

Given Files:

Movie.java

public class Movie extends Media {
    public Movie(String name, int year, String genre) {
        super(name, year, genre);
    }

    public String getEra() {
        if (getYear() >= 2000) {
            return "New Millennium Era";
        } else if (getYear() >= 1977) {
            return "Modern Era";
        } else if (getYear() >= 1955) {
            return "Change Era";
        } else if (getYear() >= 1941) {
            return "Golden Era";
        }

        return "Pre-Golden Era";
    }

    public boolean wasReleasedAfter(Media other) {
        return getYear() > other.getYear();
    }

    public boolean wasReleasedBeforeOrInSameYear(Media other) {
        return getYear() <= other.getYear();
    }
}

Demo3.java

import java.io.FileNotFoundException;
import java.util.ArrayList;

public class Demo3 
{

    public static void main(String[] args) throws FileNotFoundException {

        ArrayList movies = MovieLoader.loadAllMovies();

        MediaReducer op = new MovieReducerExtremes();

        System.out.println("Newest");
        System.out.println(op.reduce(movies, "Newest"));
        System.out.println("Oldest");
        System.out.println(op.reduce(movies, "Oldest"));
    }
}

Media.java
public abstract class Media {
    private String name;
    private int year;
    private String genre;

    public Media(String n, int y, String g) {
        name = n;
        year = y;
        genre = g;
    }

    public String getName() {
        return name;
    }

    public int getYear() {
        return year;
    }

    public String getGenre() {
        return genre;
    }

    public String toString() {
        return String.format("%5d %-55s %-15s", year, name, genre);
    }

    //if the media was released on or after the year 2000, return New Millennium Era
    //if the media was released on or after the year 1977, return Modern Era
    //if the media was released on or after the year 1955, return Change Era
    //if the media was released on or after the year 1941, return Golden Era
    //in any other situation, return Pre-Golden Era
    public abstract String getEra();

    //return true if this media has a greater release year than the other's
    public abstract boolean wasReleasedAfter(Media other);

    //return true if this media was a lesser or equal release yearn than the other's
    public abstract boolean wasReleasedBeforeOrInSameYear(Media other);
}

MovieLoader.java

import java.io.File;
import java.io.FileNotFoundException;
import java.util.ArrayList;
import java.util.Scanner;

public class MovieLoader {
    public static ArrayList loadAllMovies() throws FileNotFoundException {
        File f = new File("movie_list.txt");
        Scanner inputFile = new Scanner(f);
        ArrayList result = new ArrayList<>();
        while (inputFile.hasNextLine()) {
            String name = inputFile.nextLine();
            int year = inputFile.nextInt();
            //skip new line
            inputFile.nextLine();
            String genre = inputFile.nextLine();
            Media m = new Movie(name, year, genre);
            result.add(m);
        }
        return result;
    }
}

MediaReducer

import java.util.ArrayList;

public interface MediaReducer {
    public String reduce(ArrayList list, String key);
}

A couple from the movie_list.txt

!Next?
1994
Documentary
#1 Single
2006
Reality-TV
#ByMySide
2012
Drama
#Follow
2011
Mystery
#nitTWITS
2011
Comedy
$#*! My Dad Says
2010
Comedy
$1,000,000 Chance of a Lifetime
1986
Game-Show
$100 Makeover
2010
Reality-TV
$100 Taxi Ride
2001
Documentary
$100,000 Name That Tune
1984
Game-Show
$100,000 Name That Tune
1984
Music
$2 Bill
2002
Documentary
$2 Bill
2002
Music
$2 Bill
2002
Music
$2 Bill
2002
Music
$2 Bill
2002
Music
$25 Million Dollar Hoax
2004
Reality-TV
$40 a Day
2002
Documentary
$5 Cover
2009
Drama
$5 Cover: Seattle
2009
Drama
$50,000 Letterbox
1980
Game-Show
$9.99
2003
Adventure
$weepstake$
1979
Drama
' Horse Trials '
2011
Sport
'80s Videos: A to Z
2009
Music
'Allo 'Allo!
1982
Comedy
'Allo 'Allo!
1982
War
'Conversations with My Wife'
2010
Comedy
'Da Kink in My Hair
2007
Comedy
'Da Kink in My Hair
2007
Drama
'More strasti'
2000
Romance
'Ons Sterrenkookboek'
2007
Documentary
'Orrible
2001
Comedy
'Orrible
2001
Crime
'Orrible
2001
Drama
'S ann an Ile
2009
Documentary
'Sang linggo nAPO sila
1995
Game-Show
'Sang linggo nAPO sila
1995
Musical
'T Wilhelmina
1975
Comedy
'Til Death Do Us Part
2006
Crime
'Til Death Do Us Part
2006
Drama
'Til Death Do Us Part
2006
Fantasy
'Til Death Do Us Part
2006
Romance
'Til Death Do Us Part
2006
Thriller
'Til Death
2006
Comedy
'Untold
2004
Documentary
'Wag kukurap
2004
Horror
'Way Out
1961
Drama
'Way Out
1961
Horror
'Way Out
1961
Sci-Fi
'n Shrink
2009
Comedy
't Is maar TV
1999
Comedy
't Is maar TV
1999
Game-Show
't Is maar een spel
2002
Comedy
't Is maar een spel
2002
Game-Show
't Schaep Met De 5 Pooten
1969
Comedy
't Schaep Met De 5 Pooten
2006
Comedy
't Schaep Met De 5 Pooten
2006
Drama
't Zal je gebeuren...
1998
Drama
't Zonnetje in huis
1993
Comedy
(S)truth
1999
Drama
+ Clair
2001
Documentary
+ Emprendedores mi+d
2010
Documentary
+ Investigadores
2008
Documentary
+ de cin�ma
2001
Documentary
+ de cin�ma
2001
News
... ins Gr�ne! Das Stadt-Land-Lust-Magazin
2010
Documentary
... und basta!
2006
Comedy
... und basta!
2006
Music
... und die Tuba bl�st der Huber
1981
Comedy

Williams-Santana, Inc., is a manufacturer of high-tech industrial parts that was started in 2009 by two talented engineers with little business training. In 2021, the company was acquired by one of its major customers. As part of an internal audit, the following facts were discovered. The audit occurred during 2021 before any adjusting entries or closing entries were prepared. The income tax rate is 25% for all years.

1. A five-year casualty insurance policy was purchased at the beginning of 2019 for $35,000. The full amount was debited to insurance expense at the time.
2. Effective January 1, 2021, the company changed the salvage value used in calculating depreciation for its office building. The building cost $600,000 on December 29, 2010, and has been depreciated on a straight-line basis assuming a useful life of 40 years and a salvage value of $100,000. Declining real estate values in the area indicate that the salvage value will be no more than $25,000.
3. On December 31, 2020, merchandise inventory was overstated by $25,000 due to a mistake in the physical inventory count using the periodic inventory system.
4. The company changed inventory cost methods to FIFO from LIFO at the end of 2021 for both financial statement and income tax purposes. The change will cause a $960,000 increase in the beginning inventory at January 1, 2022.
5. At the end of 2020, the company failed to accrue $16,400 of sales commissions earned by employees during 2020. The expense was recorded when the commissions were paid in early 2021.
6. At the beginning of 2019, the company purchased a machine at a cost of $720,000. Its useful life was estimated to be ten years with no salvage value. The machine has been depreciated by the double-declining balance method. Its book value on December 31, 2020, was $460,800. On January 1, 2021, the company changed to the straight-line method.
7. Warranty expense is determined each year as 1% of sales. Actual payment experience of recent years indicates that 0.75% is a better indication of the actual cost. Management effects the change in 2021. Credit sales for 2021 are $4,000,000; in 2020 they were $3,700,000.

Required:
For each situation:
1. Identify whether it represents an accounting change or an error. If an accounting change, identify the type of change. For accounting errors, choose "Not applicable".
2. Prepare any journal entry necessary as a direct result of the change or error correction, as well as any adjusting entry for 2021 related to the situation described. Any tax effects should be adjusted for through Income tax payable or Refund—income tax.

Prepare any journal entry necessary as a direct result of the change or error correction, as well as any adjusting entry for 2021 related to the situation described. Any tax effects should be adjusted for through Income tax payable or Refund—income tax. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

This is a tableau question.

I. (a) Determine the trend line using both linear and two nonlinear equations Hint: You can choose any two of the nonlinear options in edit trend lines within Tableau. (b) Write down the equations (coefficients). Hint: Double click on trend line and click on describe the model.

II. Which trend line would you suggest? Why?

III. Estimate the sales for 2022. Does this seem like a reasonable estimate based on historical data? (Hint: Show Me — first icon on the left hand side)

IV. Check the quality of the forecast prepared by Tableau. Also, Provide Mean Absolute Error (MAE), and the Mean Absolute Percentage Error (MAPE). Hint: one click on forecast area with the right button of your mouse, then describe forecast and check first Summary and later Models.

V. Prepare a dashboard with 4 sheets: Sheet 1 for the trend line using linear function, Sheet 2 for the trend line using one of the nonlinear function of your choice, Sheet 3 for the trend line using another nonlinear function of your preference and Sheet 4 for Forecasting.

Presented below are selected transactions at Splish Brothers Inc. for 2020.

Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Splish Brothers Inc. uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2019.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Do not round intermediate calculations.)